LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

Dollar and interest rate-important education for all.

[baranja]

Many people say that Dollar is not backed but anything, that dollar is printed out of thin air and it is nothing but fiat. nothing but hot air..  THiS IS NOT TRUE. Dollar is based on DEBT and dollar is backed by debt. Dollar is generated when the debt is made.  In order for ONE dollar to exists, there has to be ONE dollar in debt someplace else.
The VALUE of Dollar is based on The ABILITY of entity in debt, by using economy, to pay back the debt.  And that's it. That is the deffiniton of dollar.
What happens when interest rates go up?? . Take a wild guess. The debt will start collapsing.  When  One dollar of debt collapses, one dollar have to be removed from somebodys chequing  account.  If billons of dollars in debt collapse, billions of dollars will have to be reposesed from accounts.  This is how banks collapse, this is how people lose their money in the banks.  This is collapsed economy.  What is the fix here?  Only Massive printing of dollars (real printing) in order to cover debt losses. This is when you see hyper inflation. .
With quadrilion of derivatives, and other fraud activites, the things are way more dangerous and complex.

Just Curious, was this hard to understand?

[dutchmann64]

.....the dollar is backed by Gross domestic product.!!!! In other words my sweat equity. Time and Labour of every working stiff. Think about it. 

[baranja]

I guess you are one the guys that just don't get it.  It looks like this is hard matter for you. Do you understand what are you saying? How can dollar be created and backed by GDP? What is the mechanisam for that??  Time and Labour??  Looks like a bit hard matter for you. Dollar is printed every time Bond is printed and sold.  When Government prints BOND (debt) Federal

[baranja]

Even if those funny statements spread by muppets in mass media, if you calculate unemployment, GDP and inflation how they did it 30 years ago, you will see unmeployment 24%, GDP way bellow 0 and inflation approaching 10%. They dont' even talk Inflation any more. They call it "Core Inflation" . They removed food, energy, housing, schooling, and all important stuff while inluding

[goldhappy]

dutch...I agree with you about the sweat equity. Without your earned cash or the ability to earn cash you won't get credit from a bank.You will not get a credit card,you will not get a car loan,you will not get a mortgage. I'm not talking about the local loan shark or someone who lies and slips through the cracks.

[goldhappy]

Dutch.the USA is printing money in a way many of us may not fully understand. Unless more jobs are created and more tax paid from those earnings the debt clock climbs even higher. Anyone that does not think sweat equity contributes big time is dilusional. The USA is on " borrowed over their head" money. One thing the USA has going for it is many people want to move to the USA. They want

[LexMark747]

I prefer Canada to live in .... I look at the USA and think it will soon be listed with those other 3rd world countries you mentioned. This is only my thoughts.

[dutchmann64]

.....thanks for the comments "GH"..........You have stated this with eloquence. The fact is we generate dolloars through hard work. WE expend time and labour to get those dollars. That is why I get so very angry when our governments spend us into the hole. Think of how many man hours we will need to cover the debt........... Time & labour = money. Plain and simple